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Setler [38]
3 years ago
11

The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $100,000 a

year. The firms that employ designers of normal ability each collect $500,000 in revenue a year, which is just enough to ensure that each earns exactly a normal profit. However, the 200th company employs Janus Jacobs, an unusually talented designer. Because of Jacobs's talent, this company collects $700,000 in revenue a year. a. How much will Jacobs earn? Instruction: Enter your response as an integer value. $ per year. What proportion of his annual salary will be economic rent? Instruction: Enter your response as a percentage rounded to the nearest whole number. %. b. Will the advertising company for which Jacobs works be able to earn an economic profit? Yes.
Business
1 answer:
crimeas [40]3 years ago
4 0

Answer:

The answers are:

A) $280,000 per year ; 71% of his salary is economic rent.

B) No

Explanation:

Since the company that hires Janus will collect $200,000 in extra revenue, Janus should earn $280,000 per year. This includes a normal salary for a designer and the extra revenue generated by Janus's work ($80,000 + $200,000). The extra $200,000 can be considered Janus's economic rent. This represents 71% of his salary.  

Janus's employer will not be able to earn an economic profit since it is her talent that generates the extra $200,000, so if she tried to lower her salary, competing firms could offer Janus a better salary up to the $280,000 level.

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Dressing properly for interviews would put Bob in a better light as it shows he is serious about the job. It also shows he is interested in the position, and finally demonstrates an understanding of the company's corporate culture.

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4 0
2 years ago
An entrepreneur is a person who owes money to a bank or other financial institution
horsena [70]
That statement is False.

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4 0
3 years ago
Scot and Vidia, married taxpayers, earn $92,000 in taxable income and $5,000 in interest from an investment in City of Tampa bon
jok3333 [9.3K]

Answer:

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Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and she can use 24 hours per day. what
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Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and she can use 24 hours per day. The Market rate of substituion between leisure & income is $8 per day.

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